Excavator Market

Excavator Market Analysis by Wheeled and Crawlers for Construction, Forestry & Agriculture, Mining, and Rental from 2023 to 2033

Analysis of Excavator Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Excavator Market Outlook (2023 to 2033)

Expanding at a CAGR of 5.5%, the global excavator market is projected to increase from a value of US$ 74.27 billion in 2023 and reach US$ 126.86 billion by the end of 2033.

An excavator is a type of heavy equipment used in the construction industry to excavate the soil or on a construction site. An excavator is also known as a digger or hydraulic excavator. Excavators are also used in other industrial sectors such as agriculture & forestry, and mining. A common design of excavators consists of a bucket, a boom, a cab or house, and a dipper, and the whole machine usually works on hydraulic forces.

Based on the length of the boom, size of the bucket, and operational speed, excavators can be divided into different types such as mini or compact, medium, standard, and heavy excavators. Other types of excavators that are commonly used in various industrial applications are crawler excavators, long-reach excavators, dragline excavators, and suction excavators.

  • Wheeled excavators contributed to a significant portion of market revenue, accounting for 72.6% market share in 2022.

Wheeled excavators excel in swiftly and safely moving substantial debris quantities. Their exceptional mobility is predicted to boost their demand, fueled by growing requirements from various industries. Furthermore, the surge in investments in housing and infrastructure projects is also forecasted to boost the demand for excavators in the coming decade.

  • During the next 10 years, demand for crawler excavators is projected to increase at a CAGR of 5.7%. This demand growth can be attributed to their lightweight undercarriages, which enable seamless mobility between different work locations and enhance stability, ultimately leading to faster task completion.
  • Technological advancements such as the incorporation of more potent air-to-water intercooler engines, are also predicted to boost crawler excavator sales.

Key Market Developments

  • Deere & Co. a leading American manufacturer of construction equipment, recently entered a supplier partnership with Wacker Neuson a German supplier and distributor of construction equipment. The partnership aims to provide compact excavators in Asia Pacific excavator markets such as China, Oceania, and Southeast Asia.
  • Caterpillar Inc., the world’s leading player in the excavator market, recently announced that the incorporation of its latest Cat Connect Technology in the design of its three new Next Generation 20-ton size class excavators-the 320 GC, 320, and 323-has resulted in enhanced efficiency, productivity, and reduced operating cost of excavators.
  • Volvo Construction Equipment and Services, Inc. recently announced that, with the use of cable-connected and dual-powered, 70-ton excavator prototype - EX1 in its 'Electric Site' research project, the company reduced carbon emissions by 98%, energy costs by 70%, and operational cost by 40%. The company carried out this experiment with its customer Skanska AB, a Swedish construction and development company.
Report Attributes Details
Excavator Market Size (2023E) US$ 74.27 Billion
Forecasted Market Value (2033F) US$ 126.86 Billion
Global Market Growth Rate (2023 to 2033) 5.5% CAGR
Leading Regional Market Asia Pacific
Market Share of Wheeled Excavators (2022) 72.6%
Key Companies Profiled
  • Atlas Copco
  • Caterpillar Inc.
  • CNH Global NV
  • Doosan
  • Escorts Group
  • Hitachi Construction Machinery
  • Hyundai Heavy Industries Ltd
  • JC Bamford Excavators Ltd.
  • John Deere
  • Kobelco
  • Komatsu Ltd.
  • Liebherr-International AG
  • Manitou Group
  • Mitsubishi
  • Sany Heavy Industries Co Ltd.
  • Sumitomo Heavy Industries Ltd
  • Terex Corporation
  • Volvo Construction Equipment AB

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Why are Sales of Modern Excavators Increasing Steadily?

“Integration of Telematics, GPS, and IoT Technologies Advancing Excavator Performance”

The market for excavators is witnessing a profound transformation driven by a wave of technological advancements. Some of the key advancements are the integration of telematics, GPS (Global Positioning System), and IoT (Internet of Things) technologies, which collectively hold the potential to revolutionize the sector.

Telematics, a fusion of telecommunications and informatics, involves the use of advanced sensors and communication systems to collect and transmit data in real time. In the excavator industry, telematics solutions are integrated into machines to monitor their performance, fuel efficiency, and location.

Incorporation of GPS technology in excavators enables precise positioning and navigation capabilities. GPS-equipped excavators can follow predefined excavation plans with high accuracy, minimizing over-digging and ensuring work is carried out exactly as specified. GPS also allows for efficient coordination between excavators and other construction equipment, optimizing the flow of materials on job sites.

IoT connectivity has the potential to transform excavators into intelligent, data-driven machines. IoT-equipped excavators generate a wealth of data that can be analyzed to identify trends, predict maintenance needs, and optimize performance.

Integration of telematics, GPS, and IoT technologies in excavators represents a significant leap forward for the industry. These innovations not only enhance machine efficiency but also contribute to sustainability and safety. Reduced downtime, improved fuel efficiency, and precise excavation capabilities benefit construction companies by increasing productivity and reducing operating costs.

“Emergence of Electric and Hybrid Excavators to Mitigate Environmental Impact”

Construction and heavy machinery industry is undergoing significant development due to the growing environmental concerns and the need for more sustainable practices. In this context, electric and hybrid excavators are emerging as promising solutions to mitigate the industry's environmental impact while offering a range of operational advantages.

The foremost driver behind the adoption of electric and hybrid excavators is the increasing global concern over environmental sustainability. As emissions from fossil fuel-powered machinery contribute to air pollution and climate change, construction companies, respective governments, and industry stakeholders are increasingly focusing on reducing the carbon footprint of construction and excavation operations.

Electric and hybrid excavators, when compared to their conventional diesel counterparts, offer a dramatic reduction in emissions. By utilizing electric motors or a combination of electric and internal combustion engines, these excavators produce significantly lower levels of harmful pollutants such as nitrogen oxides (NOx) and particulate matter (PM).

  • Electric excavators are quieter than their diesel counterparts, contributing to reduced noise pollution on construction sites.
  • The advancement of battery technology is also playing a pivotal role in making electric and hybrid excavators more practical. Lithium-ion batteries, in particular, offer higher energy density, longer life spans, and faster charging times, making them suitable for heavy-duty construction equipment.

“Stringent Emission Regulations and Safety Standards Pushing Excavator Manufacturers to Innovate”

A majority of excavators used in various industrial sectors use diesel as fuel. To limit the air pollution caused due to heavy equipment with ignition engines, such as excavators, various governing bodies have incorporated stringent emission regulations, which all the players in the excavator industry need to conform to.

  • The United States Environmental Protection Agency (EPA) has developed Tier 4 emission standards, certification requirements, and other compliance provisions for manufacturers in the excavator market.
  • In addition, non-road mobile machinery emission regulations developed by the European Commission and Regulation (EU) 2016/1628 require excavator manufacturers to modify their manufacturing strategies, which may add to the total manufacturing costs.

Thus, the imposition of stringent laws and quality standards is influencing the product and business strategy of excavator manufacturers.

excavator market Size, Share, Trends, Growth, Demand and Sales Forecast Report by Fact.MR

What Can Hamper the Sales Growth of Excavators to Some Extent?

“High Initial Investment and Maintenance Cost of Excavators”

While excavators offer essential capabilities for construction and excavation projects, the substantial initial investment required to purchase these machines can pose significant challenges, particularly for smaller construction companies

The primary concern for smaller construction companies is the financial burden associated with purchasing excavators. These machines represent a considerable capital expense, and acquiring them can strain the company's financial resources. Smaller end-use organizations may find it challenging to allocate a substantial portion of their budget to acquire equipment, potentially limiting their ability to invest in other critical areas of their business.

  • Beyond the initial investment, owning and operating an excavator entails ongoing costs, including maintenance, fuel, insurance, and repairs. Smaller companies may find it challenging to budget for these expenses, particularly if unexpected repair costs arise.

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How Can New Companies Succeed in the Market for Excavators?

“Product Innovation and Niche Marketing Profitable Moves for Start-ups”

Entering the excavator market as a newcomer can be challenging due to established competition and high barriers to entry. However, several strategies can aid newcomers in earning more and establishing a foothold in the industry.

New companies can stand out by offering innovative features, designs, or technologies that address specific market needs or provide unique advantages over existing excavators. This could include improved fuel efficiency, reduced emissions, enhanced operator comfort, or specialized attachments for niche applications.

New market entrants can also focus on niche markets or specific applications where there may be less competition. For example, specialize in excavators designed for landscaping, forestry, or urban construction, catering to the unique requirements of these segments. Start-ups can also build a strong brand identity and marketing strategy to create awareness and trust among potential customers.

Country-wise Analysis

Across Japan, the United States, and Germany, the common denominator for excavator sales growth is robust construction and infrastructure development activities. The need for excavation equipment is driven by the demands of these projects.

Government investments in infrastructure and urban development projects are significant catalysts for the excavator demand growth, particularly in the United States and Japan.

Why are Sales of Excavators Increasing in Japan?

“Advanced Japanese Excavators Gaining Traction”

Japanese manufacturers, known for their innovation, are at the forefront of developing advanced excavators. The incorporation of cutting-edge technologies, including electric and hybrid excavators, is spurring interest in upgrading fleets, boosting the Japanese market growth.

Japan also has strict emissions regulations, pushing companies to replace older, polluting excavators with more eco-friendly models. This compliance requirement is driving the adoption of cleaner and more efficient machines.

Why is the United States a Profitable Market for Excavator Manufacturers?

“Construction Boom and Infrastructural Investments by Government”

The United States market is experiencing a construction and infrastructure development boom, driven by population growth and urbanization. This surge in construction activities is leading to a high demand for excavators for various projects, from residential to commercial.

Government initiatives, such as the Infrastructure Investment and Jobs Act, involve significant investments in infrastructure improvement and modernization. These projects require excavators for tasks such as road construction and bridge repairs.

What’s Driving Sales of Excavators in Germany?

“German Excavator Manufacturers Enjoying Lucrative Export Opportunities”

German excavator manufacturers are benefiting from a robust export market. The country's reputation for engineering excellence and high-quality construction machinery is leading to a strong demand for German excavators globally.

The renewal and revitalization of urban areas in Germany require excavation for various construction and infrastructure projects. Aging cityscapes, coupled with environmental concerns, are driving the need for modern excavators.

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Category-wise Analysis

High demand for electric drive excavators is primarily driven by environmental concerns, emissions regulations, and cost savings.

According to Fact.MR, a market research and competitive intelligence provider, as the construction industry continues to prioritize sustainability and efficiency, the adoption of electric excavators is predicted to grow even further in the coming years.

Why are Electric Excavators Gaining Momentum?

“Environmental Concerns Driving Demand for Electric Drive Excavators”

  • Electric drive excavator demand is foreseen to increase at a robust CAGR of 14.5% during the next 10 years. This growth is primarily driven by the rising demand for compact excavators.

Several countries, including China and India, are taking decisive steps to achieve net-zero emissions, thereby boosting the demand for electric excavators. Moreover, the shift towards electrifying drivetrains as a means to curb carbon emissions is expected to further stimulate product sales.

Competitive Landscape

Leading excavator companies are placing significant emphasis on the advancement of their product lines. They are integrating state-of-the-art technologies such as the Internet of Things (IoT), Machine Learning (ML), and automation into their offerings. Additionally, key market players are actively pursuing expansion, mergers, acquisitions, and other tactics to optimize their revenue streams.

In their commitment to environmental responsibility and compliance with emission standards, excavator manufacturers are also employing inventive strategies to minimize their carbon footprint.

  • In March 2023, Tata Hitachi unveiled their latest mining excavator, the ZX670H. This machine is engineered to deliver exceptional durability, comfort, and safety while keeping operating costs at a minimum.

Key Segments of Excavator Market Research

  • By Type :

    • Wheeled
    • Crawler
  • By Vehicle Weight :

    • < 10 Metric Tons
    • 11 to 45 Metric Tons
    • 46 Metric Tons >
  • By Engine Capacity :

    • Up to 250 HP
    • 250 to 500 HP
  • By Drive Type :

    • Electric
    • ICE
  • By Application :

    • Construction
    • Forestry & Agriculture
    • Mining
    • Rental
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

What is the market size of excavators in 2023?

The global excavator market is valued at US$ 74.27 billion in 2023.

Why are excavators in high demand?

Global demand for excavators is predicted to rise at a CAGR of 5.5% from 2023 to 2033.

What is the projected value of the global excavator market for 2033?

The market for excavators is projected to reach US$ 126.86 billion by 2033.

Who are the leading manufacturers of excavators?

Top excavator brands are Atlas Copco, Caterpillar Inc., CNH Global NV, and Doosan.

Which is the leading regional market for excavators?

Asia Pacific is handsomely leading the worldwide sales of excavators.

What is the market share held by wheeled excavators?

Wheeled excavators accounted for a market share of 72.6% in 2022.

What is an excavator?

An excavator is a heavy construction machine commonly used in construction, mining, demolition, and other earthmoving operations.

Excavator Market

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